Reddit (NYSE:RDDT) Stock: Insider Mary Porter Gale Sells 3,000 Shares

Key Points

• Reddit director Mary Porter Gale sold 3,000 shares for $288,000 at an average price of $96, leaving her with 18,181 shares.
• Reddit beat quarterly estimates, reporting EPS of $1.40 versus $1.33 expected and revenue of $894.96 million, up 53% year over year.
• The stock fell to $93.85, while several brokerages downgraded their ratings or cut price targets; analysts’ consensus remained “Moderate Buy,” with a $180.91 target.

Reddit Inc. (NYSE:RDDT - Get Free Report) Director Mary Gale sold 3,000 shares of Reddit stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $96.00, for a total value of $288,000.00. Following the completion of the transaction, the director owned 18,181 shares of the company's stock, valued at $1,745,376. This trade represents a 14.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website.

Reddit Stock Down 7.9%

Shares of NYSE:RDDT traded down $8.04 on Thursday, reaching $93.85. 8,281,352 shares of the company's stock were exchanged, compared to its average volume of 5,593,524. The firm has a market capitalization of $18.06 billion, a price-to-earnings ratio of 19.15, a PEG ratio of 0.39 and a beta of 2.28. Reddit Inc. has a fifty-two week low of $89.28 and a fifty-two week high of $263.50. The business's 50-day moving average is $145.55 and its two-hundred day moving average is $157.31.

Reddit (NYSE:RDDT - Get Free Report) last released its quarterly earnings data on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.33 by $0.07. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The business had revenue of $894.96 million during the quarter, compared to analyst estimates of $874.91 million. During the same quarter in the previous year, the firm posted $0.80 EPS. The business's revenue for the quarter was up 53.0% compared to the same quarter last year. Analysts predict that Reddit Inc. will post 5.42 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of brokerages have recently commented on RDDT. KeyCorp downgraded Reddit from an "overweight" rating to a "sector weight" rating in a research report on Friday, October 30th. Oppenheimer cut Reddit from an "outperform" rating to a "market perform" rating in a report on Friday, October 30th. Jefferies Financial Group cut their target price on Reddit from $200.00 to $155.00 in a research report on Friday, October 30th. UBS Group reaffirmed a "buy" rating on shares of Reddit in a report on Friday, October 30th. Finally, President Capital decreased their price target on Reddit from $207.00 to $199.00 and set a "buy" rating for the company in a research report on Thursday, September 17th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and fifteen have given a Hold rating to the company. Based on data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $180.91.

Hedge Funds Weigh In On Reddit

Several hedge funds have recently bought and sold shares of the business. Sunbelt Securities Inc. raised its position in shares of Reddit by 87.5% in the first quarter. Sunbelt Securities Inc. now owns 195 shares of the company's stock valued at $26,000 after purchasing an additional 91 shares during the period. Ascentis Independent Advisors bought a new stake in shares of Reddit during the 1st quarter worth $30,000. EverSource Wealth Advisors LLC boosted its holdings in shares of Reddit by 48.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company's stock worth $34,000 after buying an additional 64 shares during the period. Beacon Investment Advisory Services Inc. acquired a new position in Reddit in the 2nd quarter valued at $35,000. Finally, Root Financial Partners LLC acquired a new position in Reddit in the 3rd quarter valued at $41,000.

More Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit was included among communication-services stocks analysts are bullish on, offering a favorable counterpoint to recent rating cuts. Article: Analysts Are Bullish on These Communication Services Stocks
• Positive Sentiment: Reddit’s latest reported quarter beat analyst expectations for earnings and revenue, with revenue up 53% year over year. Company earnings information
• Neutral Sentiment: Brokers issued forecasts for Reddit’s fourth-quarter earnings, but the report provided no forecast figures or revisions to clarify the expected impact. Article: Brokers Issue Forecasts for Reddit's Q4 Earnings
• Negative Sentiment: KeyCorp cut its FY2028 EPS estimate to $7.06 from $8.73, a notable reduction to its longer-term earnings outlook, although it raised its FY2026 estimate to $5.41 from $4.90. Analyst estimate information
• Negative Sentiment: Loop Capital and Evercore lowered their ratings on Reddit, adding to concerns about near-term expectations. Article: Reddit Stock Rating Lowered by Loop Capital Article: Reddit Rating Lowered to Hold at Evercore
• Negative Sentiment: Block & Leviton announced an investigation into potential securities-law violations. This is an investigation announcement, not a finding of wrongdoing, but it may add uncertainty for investors. Article: Securities Fraud Investigation
• Negative Sentiment: Recent coverage highlights investor concern about AI-powered search and its potential implications for Reddit, keeping that competitive risk in focus despite an article describing a rebound from the scare. Article: Reddit is fighting back against AI Article: Reddit Stock Roars Back From AI Search Scare

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.

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